Varian Medical Systems will spin off its medical imaging equipment unit into a separate, publicly traded business, focusing its remaining operations on medical technology used in cancer treatment.

The new company will manufacture and sell Palo Alto-based Varian’s X-ray, parts, workstation and software that are used in medical imaging devices. It is expected to have annual sales of about $575 million and about 1,300 employees. The new company’s name and management structure will be disclosed later.

Shareholders will get stock in the new company in a tax-free distribution, and the separation is expected to be finished by the end of the year, Varian said in a statement Monday. The shares rose less than 1 percent to $83.49 in trading after the market closed.

“We will give two fundamentally different businesses independence to optimize their strategies and operations to enhance their growth,” said Varian Chief Executive Officer Dow Wilson. “It will enable Varian to focus on expanding its position as a global cancer company with leading technology and services. It will empower the new company to grow as a global leader in components, software and services for expanded imaging applications and markets.”

Varian’s cancer business is the company’s largest, and made up 76 percent of the company’s $3.1 billion in sales last year. It sells equipment, software and services for therapies used to treat cancer, such as radiation and proton beam treatments.

The company will take a $35 million charge related to the spinoff. JPMorgan Chase & Co. is acting as the company’s financial adviser, and Wachtell, Lipton, Rosen & Katz as legal adviser.